5-Minute HR Challenge: Spot the Compliance Mistake
Restructuring is part of business life. But when roles are no longer required, redundancy must be handled with care. Get it wrong and you could face unfair dismissal claims, compensation orders or penalties under the Fair Work Act 2009 (Cth).
The Situation
Your business is downsizing. You tell an employee their job is redundant and advise they can apply for other roles you’ve advertised.
✅ Genuine redundancy, or
❌ Compliance risk?
Is this compliant with the Fair Work Act?
❌ Compliance risk. A redundancy is only genuine if:
The role is no longer required due to operational change.
You’ve consulted with employees under Awards or Agreements.
You’ve actively explored redeployment opportunities across the business and associated entities.
Simply requiring an employee to apply for vacancies — does not meet the test.
What This Means for Employers:
Consultation must start before the final decision.
Redeployment options must be genuine and offered, not just advertised.
Records of your process protect you against claims.
Redundancy is more than just a business decision — it’s a compliance process. Make sure you meet your obligations before making changes.
Watch our quick video to learn what this means for your business and how to avoid penalties:
Thinking about a restructure? For peace of mind, reach out to our team at [email protected] | 1300 720 004.
